MSCI Defers Exclusion Rules, Corporate Bitcoin Holders Rally
MSCI's decision to defer restrictive exclusion rules sparked a relief rally for corporate bitcoin holders. While treasury strategies dominated the headlines, traditional financial institutions continued their march on-chain with new tokenization pilots and ETF filings, even as miners adjusted their balance sheets to weather revenue pressures. Stay up on the crypto news that matters with "Crypto Currents," daily from The Fly. Join us at 2 PM ET for your essential briefing on the fast-moving world of cryptocurrency on FlyCast radio.MSCI DEFERRAL DECISION BOOSTS CRYPTO TREASURY STOCKS: In a significant development for equities with heavy digital asset exposure, index provider MSCIhas decided not to implement its proposal to exclude "Digital Asset Treasury Companies," or DATCOs, from its global indexes during the February 2026 review., the index provider will instead open a broader consultation on the treatment of non-operating companies. The deferral removes a near-term technical risk that could have forced investors to sell shares of companies that use digital assets like bitcoinor etheras primary treasury reserve assets, preserving benchmark-related capital inflows for now.The news provided an immediate lift to the sector, with the largest corporate bitcoin holder, Strategy, surging 6% in after-hours trading on Tuesday. Other firms with similar treasury strategies, including Bitmine Immersion, Sharplink Gaming, and Twenty One Capital, also saw modest gains following the announcement. Additionally, Strategy's perpetual preferred stockreclaimed the $100 par value level for the first time since November. This return to par allows the company to potentially issue more shares through at-the-market offerings to fund further bitcoin purchases.RIOT AND CLEANSPARK ADJUST BITCOIN TREASURIES AMID REVENUE PRESSURE:While treasury firms saw relief, bitcoin miners spent December adjusting their holdings to manage operational realities.that Riot Platformssold $162M worth of bitcoin in December, reducing its treasury to 18,005 BTC. The sale, which marked Riot's largest single-month liquidation to date, coincided with a slump in "hashprice", a term defined as a measure of mining profitability, back toward cycle lows. Riot was not alone in this strategy, as peer miner CleanSparksold 577 BTC in December, generating $51.5M in proceeds. The sales come as miners grapple with compressed margins while continuing to expand capacity, with Riot increasing its deployed hashrate to 38.5 EH/s.JPMORGAN EXPANDS JPM COIN TO CANTON NETWORK:JPMorganis significantly expanding the utility of its blockchain-based payment rail., the bank's digital payments division, Kinexys, is launching JPM Coin on the Canton Network, a layer-1 blockchain designed for institutional finance. This integration allows JPM Coin to function as a deposit token representing U.S. dollars held at the bank, facilitating 24/7 peer-to-peer transfers and settlements. In related developments, Lloyds Banking Group (LYG) completed the U.K.'s first government bond purchase using tokenized deposits, and Barclaysinvested in Ubyx to develop clearing systems for tokenized money,.CORPORATE WEB3 ADOPTION STRATEGIES DIVERGE:Corporate adoption of Web3 technologies remains mixed. Rumble (RUM) shares moved higher after the video platform launched a non-custodial crypto wallet in partnership with Tether.the integration allows creators to receive tips in bitcoin and stablecoins directly. Conversely, Nikehas reportedly sold its NFT studio, RTFKT, ending a high-profile metaverse experiment. The sale follows the shutdown of the subsidiary's operations amid a cooling NFT market.REGULATORY LANDSCAPE SHIFTS WITH ALL REPUBLICAN SEC COMMISSION:The regulatory outlook in Washington is shifting, with the SEC now comprised entirely of Republican commissioners following the departure of Caroline Crenshaw. This "unusual" composition is expected to pave the way for a pro-crypto rulemaking agenda in 2026, potentially removing prior hurdles for the industry..PRICE ACTION:As of time of writing, bitcoin was trading at$91, 237.43, while ether was trading at $3,159.39,.
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MSCI Announces May 2026 Index Review Results
- Global Standard Index Adjustments: The MSCI ACWI Index will see 49 additions and 101 deletions, effective after the close on May 29, 2026, which is expected to influence global investors' asset allocation strategies significantly.
- Major Additions: Medline A, MasTec, and TechnipFMC will be the largest additions by market capitalization to the MSCI World Index, likely enhancing their market visibility and attracting more investor interest.
- Small Cap Index Changes: The MSCI ACWI Small Cap Index will add 246 securities and delete 195, reflecting the dynamic nature of the small-cap market and potentially impacting investors' portfolio choices.
- Emerging Market Dynamics: Itau Unibanco, Yangtze Optical Fibre, and Sichuan Biokin Pharmaceutical will be the largest additions to the MSCI Emerging Markets Index, highlighting their growth potential in emerging markets and likely drawing more international investor attention.
Indonesia's OJK Responds to MSCI Index Changes
- Market Reaction Analysis: Indonesia's Financial Services Authority (OJK) stated that despite MSCI's removal of six firms, there was no panic selling, as the Jakarta Composite Index fell by 1.92% on Wednesday, indicating market volatility, yet overall trading volume and frequency suggested stable investor sentiment.
- Impact of Company Adjustments: MSCI's quarterly review led to the removal of six companies, including Amman Mineral International (AMMN.JK) and Barito Renewables Energy (BREN.JK), causing their stock prices to tumble over 10%, while Sumber Alfaria Trijaya (AMRT.JK) only dropped 2.47% due to its transition to the small-cap index.
- Future Outlook: OJK is committed to advancing market reforms to enhance stock quality, particularly for those meeting global index standards, with expectations of forced selling pressure from passive index-tracking funds during the May 29 rebalancing.
- Regulatory Challenges: MSCI warned that Indonesia could be downgraded to
MSCI to Announce May 2026 Index Review Results
- Index Review Timing: MSCI will announce the list of additions and deletions for the May 2026 Index Review on May 12, 2026, at 11:00 PM CEST, with all changes effective at the close on May 29, 2026, thereby providing investors with updated market dynamics and decision-making support.
- Information Release Channels: The list will be posted on MSCI's website, followed by a summary on Bloomberg and Reuters, ensuring that global investors can access critical information promptly, enhancing their market responsiveness.
- Client Access to Information: MSCI will provide detailed rebalancing information to clients, accessible in the subscriber section of the MSCI website, which will help clients better understand the changes in their portfolios and their potential impacts.
- Global Market Impact: This index review encompasses several key indexes, including the MSCI Global Standard and Small Cap Indexes, reflecting MSCI's significant role in the global investment market, which can influence investors' asset allocation and market liquidity.
Michael Burry Reenters Investment Scene with Microsoft Bet
- New Investment Direction: Michael Burry recently announced a new investment in Microsoft (MSFT) through his Substack, reflecting his confidence in 'bombed-out software and payment stocks,' despite Microsoft experiencing a 23% drop in Q1, marking its worst performance since the 2008 financial crisis.
- Software Sector Analysis: Burry believes the pressures facing the software industry stem from a 'reflexive positive feedback loop' between declining software stock prices and corporate debt, but he asserts that this dynamic cannot persist much longer, suggesting a potential rebound ahead.
- AI Impact Assessment: While Burry acknowledges the serious impacts of AI on several software companies, he remains unconcerned about the stocks he has chosen, believing they still hold investment value, particularly given the strong performance of Microsoft's Azure cloud business.
- Copilot Growth Potential: Although Microsoft's AI assistant Copilot currently has only 15 million paid users, a small fraction of its Microsoft 365 user base, CEO Satya Nadella is actively working on releasing new features, which could become a growth engine in the future, despite the presence of many AI assistant options in the market.
Michael Burry Increases Holdings in Microsoft and Other Software Stocks
- New Investment Positioning: Michael Burry has initiated a new position in Microsoft and other software stocks, believing these software and fintech payment companies are oversold despite broader market downside risks, indicating his confidence in these sectors.
- Increased Holdings: Burry has also increased his stakes in MSCI, PayPal, and Adobe, which have seen declines of approximately 25%, 37%, and 54% from their peaks, respectively, reflecting his optimism towards these depressed assets.
- Growing Market Concerns: Burry has expressed increasing unease about the broader market, noting that despite persistent geopolitical tensions, the market has experienced an unprecedented rally, suggesting a cautious outlook on future market trends.
- Put Options Strategy: He has raised the proportion of put options to 5% of his portfolio, indicating a more conservative investment strategy in light of potential market volatility under the current conditions.
Burry Increases Holdings in Microsoft and GameStop Stocks
- New Investment Moves: Notable investor Michael Burry disclosed a new position in Microsoft and increased his GameStop holdings for the second consecutive day, with a reported purchase of $6.4 million on Wednesday, indicating confidence in both companies' market potential.
- Tech Stock Declines: Major declines in ServiceNow and IBM following disappointing earnings have led to significant stock drops, with ServiceNow citing impacts from the Middle East conflict and issuing a lower full-year subscription gross margin outlook, while IBM's stock fell 8.3% due to unchanged revenue guidance, raising investor concerns about other tech firms.
- Options Trading Strategy: Burry purchased put options on QQQ, NVIDIA, and SOXX with strike prices of $550, $115, and $330 respectively, reflecting his bearish outlook on tech stocks, particularly after the AI-driven rally in semiconductor stocks.
- Market Dynamics Analysis: Despite the downturn in software and payment stocks, Burry remains optimistic about bombed-out stocks, suggesting that the AI-driven rally may cool off, especially after the semiconductor sector's historic surge, indicating potential market adjustments ahead.
MSCI Announces May 2026 Index Review Results
- Global Standard Index Adjustments: The MSCI ACWI Index will see 49 additions and 101 deletions, effective after the close on May 29, 2026, which is expected to influence global investors' asset allocation strategies significantly.
- Major Additions: Medline A, MasTec, and TechnipFMC will be the largest additions by market capitalization to the MSCI World Index, likely enhancing their market visibility and attracting more investor interest.
- Small Cap Index Changes: The MSCI ACWI Small Cap Index will add 246 securities and delete 195, reflecting the dynamic nature of the small-cap market and potentially impacting investors' portfolio choices.
- Emerging Market Dynamics: Itau Unibanco, Yangtze Optical Fibre, and Sichuan Biokin Pharmaceutical will be the largest additions to the MSCI Emerging Markets Index, highlighting their growth potential in emerging markets and likely drawing more international investor attention.
Indonesia's OJK Responds to MSCI Index Changes
- Market Reaction Analysis: Indonesia's Financial Services Authority (OJK) stated that despite MSCI's removal of six firms, there was no panic selling, as the Jakarta Composite Index fell by 1.92% on Wednesday, indicating market volatility, yet overall trading volume and frequency suggested stable investor sentiment.
- Impact of Company Adjustments: MSCI's quarterly review led to the removal of six companies, including Amman Mineral International (AMMN.JK) and Barito Renewables Energy (BREN.JK), causing their stock prices to tumble over 10%, while Sumber Alfaria Trijaya (AMRT.JK) only dropped 2.47% due to its transition to the small-cap index.
- Future Outlook: OJK is committed to advancing market reforms to enhance stock quality, particularly for those meeting global index standards, with expectations of forced selling pressure from passive index-tracking funds during the May 29 rebalancing.
- Regulatory Challenges: MSCI warned that Indonesia could be downgraded to
MSCI to Announce May 2026 Index Review Results
- Index Review Timing: MSCI will announce the list of additions and deletions for the May 2026 Index Review on May 12, 2026, at 11:00 PM CEST, with all changes effective at the close on May 29, 2026, thereby providing investors with updated market dynamics and decision-making support.
- Information Release Channels: The list will be posted on MSCI's website, followed by a summary on Bloomberg and Reuters, ensuring that global investors can access critical information promptly, enhancing their market responsiveness.
- Client Access to Information: MSCI will provide detailed rebalancing information to clients, accessible in the subscriber section of the MSCI website, which will help clients better understand the changes in their portfolios and their potential impacts.
- Global Market Impact: This index review encompasses several key indexes, including the MSCI Global Standard and Small Cap Indexes, reflecting MSCI's significant role in the global investment market, which can influence investors' asset allocation and market liquidity.
Michael Burry Reenters Investment Scene with Microsoft Bet
- New Investment Direction: Michael Burry recently announced a new investment in Microsoft (MSFT) through his Substack, reflecting his confidence in 'bombed-out software and payment stocks,' despite Microsoft experiencing a 23% drop in Q1, marking its worst performance since the 2008 financial crisis.
- Software Sector Analysis: Burry believes the pressures facing the software industry stem from a 'reflexive positive feedback loop' between declining software stock prices and corporate debt, but he asserts that this dynamic cannot persist much longer, suggesting a potential rebound ahead.
- AI Impact Assessment: While Burry acknowledges the serious impacts of AI on several software companies, he remains unconcerned about the stocks he has chosen, believing they still hold investment value, particularly given the strong performance of Microsoft's Azure cloud business.
- Copilot Growth Potential: Although Microsoft's AI assistant Copilot currently has only 15 million paid users, a small fraction of its Microsoft 365 user base, CEO Satya Nadella is actively working on releasing new features, which could become a growth engine in the future, despite the presence of many AI assistant options in the market.
Michael Burry Increases Holdings in Microsoft and Other Software Stocks
- New Investment Positioning: Michael Burry has initiated a new position in Microsoft and other software stocks, believing these software and fintech payment companies are oversold despite broader market downside risks, indicating his confidence in these sectors.
- Increased Holdings: Burry has also increased his stakes in MSCI, PayPal, and Adobe, which have seen declines of approximately 25%, 37%, and 54% from their peaks, respectively, reflecting his optimism towards these depressed assets.
- Growing Market Concerns: Burry has expressed increasing unease about the broader market, noting that despite persistent geopolitical tensions, the market has experienced an unprecedented rally, suggesting a cautious outlook on future market trends.
- Put Options Strategy: He has raised the proportion of put options to 5% of his portfolio, indicating a more conservative investment strategy in light of potential market volatility under the current conditions.
Burry Increases Holdings in Microsoft and GameStop Stocks
- New Investment Moves: Notable investor Michael Burry disclosed a new position in Microsoft and increased his GameStop holdings for the second consecutive day, with a reported purchase of $6.4 million on Wednesday, indicating confidence in both companies' market potential.
- Tech Stock Declines: Major declines in ServiceNow and IBM following disappointing earnings have led to significant stock drops, with ServiceNow citing impacts from the Middle East conflict and issuing a lower full-year subscription gross margin outlook, while IBM's stock fell 8.3% due to unchanged revenue guidance, raising investor concerns about other tech firms.
- Options Trading Strategy: Burry purchased put options on QQQ, NVIDIA, and SOXX with strike prices of $550, $115, and $330 respectively, reflecting his bearish outlook on tech stocks, particularly after the AI-driven rally in semiconductor stocks.
- Market Dynamics Analysis: Despite the downturn in software and payment stocks, Burry remains optimistic about bombed-out stocks, suggesting that the AI-driven rally may cool off, especially after the semiconductor sector's historic surge, indicating potential market adjustments ahead.
